States running TANF (Temporary Assistance for Needy Families) — the federal block grant that funds cash assistance and related services for low-income families — would face new spending rules and accountability requirements under this bill. Federal TANF funds could only be used to help families earning less than twice the federal poverty level, and states would be required to spend grant money within two fiscal years rather than carrying large amounts indefinitely. States must also certify that federal funds are supplementing rather than replacing their own spending, and would be subject to the federal improper payments tracking law that currently applies to federal agencies. The changes take effect October 1, 2027.
Average Household Impact
- TANF eligibility target — restricts federal funds to families under 200% of the poverty line, directing more resources to lower-income households
- State flexibility in TANF spending — adds spending deadlines and reserve caps, reducing states' ability to bank funds for future use
Transparency & Accountability
- Improper payments tracking — applies federal Payment Integrity Information Act standards to state TANF programs
- State supplementation certification — requires chief executive officer attestation that federal funds do not replace state spending
- Fraud reduction plan — requires HHS to submit a 10-year plan to Congress for eliminating TANF improper payments
Congressional Summary
Preventing Waste, Fraud, and Abuse in TANF ActThis bill limits how and when states may use Temporary Assistance for Needy Families (TANF) funds and establishes an eligibility threshold for all TANF-funded assistance and services.Currently, each state sets its own eligibility threshold for TANF-funded cash assistance. The bill establishes an upper limit on eligibility applicable to all assistance and services (including non-cash benefits) funded by TANF family assistance grants. Under this provision, only families with income under 200% of the federal poverty guidelines may receive TANF-funded assistance and services.Further, the bill generally requires states to obligate TANF funds by the end of the fiscal year after they are paid and to spend funds by the end of the second fiscal year after they are paid. However, states may reserve a specified portion of their TANF funds for future use. (There is currently no requirement to use TANF funds within a specified period.)The bill also explicitly requires states to use federal TANF funds to supplement, not replace, state and local funding for TANF-supported programs. (Current law requires states to spend a specified minimum amount on TANF-eligible activities and populations, known as the maintenance of effort requirement.)States must also take specified steps to track and report on improper payments of federal funds (e.g., overpayments, underpayments, payments to ineligible recipients). Within one year of enactment, HHS must submit to Congress a plan to reduce or eliminate improper payments made by states under the TANF program within 10 years.
Details
- Congress
- 119th
- Chamber
- House
- Status
- summarized
- Action
- Reported to House
- Action Date
- 2026-05-29
- Date Added
- 2026-06-02
- Source
- Congress.gov →
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